New Colorado MCC Bill Goes Into Effect to Detect & Deter Gun Crime

August 6, 2024

Colorado becomes the second state to implement a Merchant Category Code (MCC) to deter and detect suspicious firearm purchases.

DENVER — Tomorrow, Colorado will become the second state in the country, following California just last month, to require payment card networks like Visa and Mastercard implement a specific merchant category code (MCC) for gun and ammunition shops, enabling banks and credit card companies to recognize dangerous firearm purchasing patterns. Implementation of the new MCC 5723, in Colorado for gun and ammunition shops means we now have a critical tool at our disposal to help identify those who may carry out atrocities like mass shootings or acts of domestic terrorism and stop them. It also applies the same banking and business standards that all other merchant categories abide by to the gun industry, ending an exception that consumers weren’t aware of before extensive campaigning by Guns Down America.

Guns Down America Executive Director and Coloradan Hudson Munoz, who testified twice before representatives in support of the bill, released the following statement:

“Tomorrow, we will finally implement a much-needed change in Colorado state law. Senate Bill 66 requires the use of the merchant category code for gun retailers, ensuring they are finally held to the same standard as virtually every other retail business, no longer uniquely exempted from complying with basic banking standards.

As consumers and citizens, we should be outraged that this code was not implemented sooner, not only for business fairness, but for its life-saving potential. Had this law existed in 2012, we would have been able to flag – and perhaps prevent – the devastating mass shooting at an Aurora movie theater, before which, the shooter used a MasterCard to purchase $11,000 worth of guns and ammunition.

By allowing credit card companies and banks to categorize gun and ammunition stores and flag suspicious purchasing patterns to law enforcement, we are one step closer to ensuring Coloradans are safe at the grocery store, school, movie theater, and every other public space where we should be enjoying a free, civil society instead of looking over our shoulders.”

Guns Down America is the national organization behind the first-of-its-kind report examining how payment processors could impact gun crime: The Gun Store Exception, which was twice cited by Colorado House Democrats during the legislative process. First, when the MCC bill passed the House in April and now, as we celebrate the bill’s implementation.